DoD awards $6.9M contract for water treatment plant design and demolition at Misawa Air Base, Japan

Contract Overview

Contract Amount: $6,912,663 ($6.9M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-10

End Date: 2026-04-09

Contract Duration: 423 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NO. QKKA 241024, DESIGN-CONSOLIDATE/DEMO WATER FIRM PRICE TREATMENT PLANT, MULTI, MISAWA AIR BASE, JAPAN

Plain-Language Summary

Department of Defense obligated $6.9 million to TETRA TECH, INC. for work described as: PROJECT NO. QKKA 241024, DESIGN-CONSOLIDATE/DEMO WATER FIRM PRICE TREATMENT PLANT, MULTI, MISAWA AIR BASE, JAPAN Key points: 1. Contract awarded to Tetra Tech, Inc. for engineering services. 2. Project involves design, consolidation, and demolition of a water treatment plant. 3. Work will be performed at Misawa Air Base, Japan. 4. Contract duration is 423 days. 5. This is a firm-fixed-price contract. 6. The award falls under the Engineering Services NAICS code (541330).

Value Assessment

Rating: good

The contract value of $6.9 million for a design-consolidate/demo water treatment plant project appears reasonable given the scope of work and location. While direct comparisons are difficult without more specific project details, engineering services for complex infrastructure projects in overseas locations often incur significant costs due to specialized requirements, logistics, and labor. The firm-fixed-price structure suggests that the contractor assumes the primary risk for cost overruns, which can be a positive indicator of value if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This method generally promotes a competitive environment, encouraging bidders to offer their best pricing and technical solutions to win the contract. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value received for public funds.

Public Impact

The Department of Defense benefits from improved water treatment infrastructure at a key overseas installation. The project will deliver design, consolidation, and demolition services for a critical water facility. Misawa Air Base in Japan will see the direct impact of this infrastructure upgrade. The project will likely involve skilled engineers and construction personnel, potentially creating or sustaining jobs in the engineering and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type, which shifts cost overrun risk to the contractor.
Project addresses critical infrastructure needs for a military installation.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to civil and environmental engineering. The market for such services is substantial, driven by ongoing infrastructure development, maintenance, and modernization needs across government and private sectors. Federal spending in engineering services is often tied to large-scale projects, including military base improvements, environmental remediation, and public works. Benchmarks for similar projects would typically consider factors like project complexity, location, and specific technical requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Tetra Tech, Inc., may engage small businesses as subcontractors for specialized services or materials, depending on their subcontracting plan and the project's needs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which requires the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Environmental Engineering Services
Public Works Infrastructure
Overseas Base Operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to TETRA TECH, INC.. PROJECT NO. QKKA 241024, DESIGN-CONSOLIDATE/DEMO WATER FIRM PRICE TREATMENT PLANT, MULTI, MISAWA AIR BASE, JAPAN

Who is the contractor on this award?

The obligated recipient is TETRA TECH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2025-02-10. End: 2026-04-09.

What is Tetra Tech, Inc.'s track record with the Department of Defense for similar engineering projects?

Tetra Tech, Inc. has a significant history of contracting with the Department of Defense (DoD) and various military branches. They are a large, established engineering firm with extensive experience in infrastructure design, environmental services, and construction management. For the DoD, their work often includes projects related to base infrastructure, environmental compliance, and facility upgrades, similar in nature to the water treatment plant project. While specific project details and performance metrics for past DoD contracts are not provided in this data, their consistent engagement with the DoD suggests a generally positive track record. Further analysis would involve reviewing past performance evaluations and contract histories for specific projects to assess timeliness, budget adherence, and quality of work.

How does the awarded amount of $6.9 million compare to similar water treatment plant design and demolition projects?

Benchmarking the $6.9 million award for a design-consolidate/demo water treatment plant project requires context regarding the scale, complexity, and location. Projects involving demolition of existing facilities and design of new, consolidated ones, especially at an overseas military base like Misawa, can be more expensive than standard domestic projects due to logistical challenges, specialized labor requirements, and potentially stricter environmental regulations. Without specific details on the plant's capacity, the extent of demolition, or the complexity of the new design, a precise comparison is difficult. However, for large-scale infrastructure projects of this nature, particularly those with international components, the awarded amount appears within a plausible range. A more thorough comparison would involve analyzing data from similar projects awarded by the DoD or other government agencies for overseas installations.

What are the primary risks associated with this firm-fixed-price contract for the government?

The primary risk for the government in a firm-fixed-price (FFP) contract is that the contractor may seek to reduce costs by compromising quality or scope if not adequately monitored. While FFP shifts cost overrun risk to the contractor, the government still bears the risk of receiving substandard work if performance is not rigorously overseen. Another risk is that the initial price might be inflated if competition was not sufficiently robust or if the contractor underestimated the project's complexity, leading to a less-than-optimal value for money. Ensuring clear performance standards, robust inspection protocols, and effective contract administration are crucial to mitigate these risks.

What is the expected program effectiveness and impact of this water treatment plant project?

The expected program effectiveness of this project is the modernization and consolidation of water treatment facilities at Misawa Air Base, leading to improved operational efficiency, reliability, and potentially enhanced water quality. By consolidating and demolishing older facilities, the project aims to streamline operations, reduce maintenance costs, and ensure compliance with current environmental and safety standards. The impact will be a more robust and sustainable water infrastructure supporting the base's mission. This upgrade is crucial for maintaining the health and operational readiness of personnel stationed at the base, ensuring a consistent supply of safe drinking water and effective wastewater management.

How has federal spending on engineering services for military infrastructure evolved over the past five years?

Federal spending on engineering services for military infrastructure has generally remained robust, driven by the need to maintain, modernize, and expand facilities across domestic and overseas installations. The Department of Defense consistently allocates significant funds towards infrastructure projects, including design, construction, and environmental services. While specific year-over-year figures fluctuate based on budget appropriations, geopolitical needs, and infrastructure condition assessments, there has been a sustained focus on upgrading aging facilities, enhancing energy efficiency, and addressing environmental compliance. Spending trends are also influenced by global security postures and the strategic importance of various installations. The data for this specific contract, while a single data point, aligns with this broader trend of investment in military infrastructure.

What are the potential implications of awarding this contract to Tetra Tech, Inc. on future competition for similar projects?

Awarding this contract to Tetra Tech, Inc., a large and established firm, does not inherently preclude future competition for similar projects. In fact, their successful execution of this project could enhance their reputation and competitiveness for future DoD contracts. However, the dynamics of future competition depend on several factors, including the number and capability of other firms vying for similar work, the specific requirements of future solicitations, and the overall market conditions. If Tetra Tech performs exceptionally well, they may be favored in future bids. Conversely, if other firms possess unique capabilities or offer significantly lower prices, competition could remain strong. The DoD's commitment to full and open competition for most contracts aims to ensure a level playing field.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 NICKERSON RD 2ND FL, MARLBOROUGH, MA, 01752

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,912,663

Exercised Options: $6,912,663

Current Obligation: $6,912,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890321D0013

IDV Type: IDC

Timeline